Sammaan Capital Ltd Q3 FY26 Earnings Analysis

- Sammaan Capital aims to increase disbursals from an annualized INR15,000 crores to around INR35,000 crores by fiscal year 2027. - The company targets growth AUM to reach beyond INR1.10 lakh crores, transitioning back to a normal growth rate of 20-23% annually post catch-up years (fiscal 2027-28). - Mortgages will remain the core product, comprising over 80% of disbursals in the next 24 months, with ticket sizes increasing up to INR2-3 crores. - The management plans to widen the product suite beyond mortgages into new lending segments tailored for mid to lower-income groups. - Cost of funds reduction will support increased return on assets (ROA) from 1.5% toward 2.5%. - Investment in people, branches, and technology will drive growth, with plans to quadruple staff and significantly expand branch network.

- Sammaan Capital targets significant growth with disbursals increasing from an annualized INR15,000 crores to around INR35,000 crores by fiscal year 2027. - Growth AUM expected to rise from about INR42,000 crores towards INR1.10 lakh crores in the medium term. - Management anticipates normalized growth rates of 20-23% once the company stabilizes post fiscal '27-'28 catch-up years. - Return on Assets (ROA) to improve from current ~1.5% to approximately 2.5% over the next few years; specific fiscal year targets to be shared within two quarters. - Incremental cost of funds expected to reduce from 9-9.5% down to around 7.5% post-transaction, enhancing profitability. - Net gain on derecognition expected to stabilize around 4% of disbursals, contributing to steady income. - With rating upgrades and cost optimization, profit after tax could see a significant uplift (50% impact from cost of funds reduction alone). - Management committed to expanding product suites and technology investments to support robust and diversified growth.

- Significant investments planned around people, branches, and technology as part of the company's growth strategy. - Target to expand branch network to about 500 branches over the next 2-3 years, a three to fourfold increase from current levels. - People strength expected to grow fourfold from current levels. - Focus on building tech capabilities including end-to-end disbursals on the app, quicker turnaround times, and cost-to-income reduction. - Emphasis on technology transformation aided by the investor's ecosystem, including artificial intelligence applications. - Investments will be funded by cost of funds savings, with large residuals rerouted for capacity building. - Overall capex is aimed at enabling scaling disbursals from INR15,000 crores annualized to INR35,000 crores in fiscal '27. - The strategy and investment plans are evolving and expected to be finalized within the next two quarters.

- Recent preferential equity issue approval received on October 29, 2025; pending RBI and other regulatory approvals, expected within 4 months, aiming to complete transaction by end of FY 2025-26 or early FY 2026-27. - Immediately post-announcement, raised $450 million via dollar bonds at a yield 150 basis points lower than prior issuance. - Debt flow significantly increased due to equity infusion raised in calendar years 2024 and early 2025, enabling 1.5x more balance sheet borrowings than last year. - Moody’s has put the company on review for possible upgrade; post-transaction, expect significant rating upgrades and at least 200 basis points cost of funds reduction. - Plan to increase disbursements to around INR35,000 crores in FY 2027, supported by enhanced borrowing capacity. - No explicit mention of immediate new fundraising beyond these; future plans tied to regulatory approvals and strategic roadmap development over next 2 quarters.

- The company is preparing to increase disbursals from an annualized run rate of around INR 15,000 crores to approximately INR 35,000 crores by fiscal year 2027. - The growth AUM is currently nearing INR 42,000 crores. - The legacy loan AUM has declined by roughly INR 9,000 crores since last year, targeting a further reduction to about INR 15,000 crores by year-end. - The total AUM has increased by about INR 1,000 crores over the last year. - The company plans a significant expansion of its branch network to around 500 branches over the next 2-3 years. - Product suite expansion beyond mortgages is underway, aiming to address low- to mid-income segments. - The management is still finalizing strategies post-transaction and will provide more detailed guidance in the next two quarters.